Which of the Following Benefits of Diversification Explains the Idea

question 7

Multiple Choice

Which of the following benefits of diversification explains the idea that a multiproduct firm is an efficient choice when the costs of doing business complicate inter-firm coordination?

• A)Use of internal capital markets
• B)Economies of scale and scope
• C)Economizing on transaction costs
• D)Diversifying shareholder portfolios
• E)Identifying undervalued firms

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Definitions:

Church

A place of worship for Christians or the organized community of Christians as a whole.

Positivists

Scholars who believe that the empirical sciences are the only source of knowledge about the world, emphasizing observation and experiment.

Sciences Merging

The integration of distinct scientific disciplines to address complex questions and innovate through interdisciplinary approaches.

Horizontal Privity

A legal term referring to a relationship between entities at the same level of operation, often used in property and contract law to describe certain kinds of relationships relevant to the transfer of rights or obligations.